Re:Rents are up 40 percent in some cities
by pmorici on Monday January 31, 2022 @12:39AM
(#30144963)
A government that takes on debt in its own currency like the US isn’t going to default except perhaps as a political stunt. The likely outcome is that they let inflation eat away at the debt until the ratio of debt to GDP is back to a more normal level. This benefits anyone with debt including those with a fixed rate mortgage.
Where people could get into trouble is if they take out a variable rate mortgage because rates will probably rise as inflation heats up. The other risk is I f the economy hits a bump and you can’t get or keep a job that pays the mortgage payment. These can be mostly mitigated by not trying to over extend yourself financially.
Re:Rents are up 40 percent in some cities
by ipaddr on Monday January 31, 2022 @02:11AM
(#30145372)
This keeps China in check as the debt they hold becomes worth less value. Because other western countries are doing something similiar the US dollar will stay strong.
Where people could get into trouble is if they take out a variable rate mortgage because rates will probably rise as inflation heats up. The other risk is I f the economy hits a bump and you can’t get or keep a job that pays the mortgage payment. These can be mostly mitigated by not trying to over extend yourself financially.